Week 5B- Regulatory Enforcement and Compliance

Question 1

List Main limits of Regulatory Standards

Answer 1

-Overinclusivenss
-Indeterminacy
-Interpretation

Question 2

Explain the problem of inclusiveness

Answer 2

• Reg. standards are gen. to apply to multiple situations
  -simp. complex events
  -risk the reg. turns out 2 be too inclusive

Question 3

TRUE or FALSE: sharp purposive interpretation is a way of combating the problem of inclusiveness

Answer 3

TRUE

Question 4

Explain the problem of indeterminacy

Answer 4

• Rules, by their nature cannot be conclusively determined-nature of language
  -og lawmakers cannot encapsulate what they mean 2 apply for all future eve. + possibilities

NB: remember open-ended standards

Question 5

Explain the problem of interpretation

Answer 5

• Stand. are always up to interp.
  -need audience(regulators) which is:
  -symph. 2 purpose to app. based on purp. (purposive interp.)
  -understand context (context. interpre.)
  -In general, understand how the markets work (expertise)

Question 6

TRUE or FALSE: Principles-based regulation does not inclued open-ended questions

Answer 6

-FALSE

Question 7

TRUE or FALSE: open-ended standards, and thus principles-based regulation, fuels indeterminacy

Answer 7

TRUE

Question 8

Explain the Principle Issue of Regulatory Enforcement and Compliance

Answer 8

• How to ensure the effec. of enforcement 2 achieve. public goals with
  
  • limits of reg standards

Question 9

Name the main enforcement modes

Answer 9

1) Pub. Enforcement
2) Priv. Enforcement
3) Hyb. Enforcement

Question 10

Explain what Public Enforcement means in regards to Regulatory Standards.

Answer 10

1.Supervis. and enforce. of reg. stand
2. Public author.
3. Pub. law means (adm. law + crim. law)
4. FUNCT. ex ante

Question 11

Explain the strengths of Pub. enforcement

Answer 11

1. pub. interest ON TOP
2. Informat. gather. powers incr. (cus can req. information)
3. Ability 2 adjust enforce. strat. 2 achieve des. level of det.

Question 12

Explain the weaknesses of Pub. Enforcement

Answer 12

1. Enforce. as a whole limit. by budg. restrict.
   2.Risk of reg. cap.
2. High pub. costs–> more enf. = more tax. money

Question 13

Explain what compliance is?

Answer 13

-Instant compliance?
-or a long-term process that make take years

Question 14

TRUE or FALSE: The questions of what compliance is, is an open-ended question.

Answer 14

TRUE

Question 15

Explain what private enforcement is

Answer 15

1. Enforce. of reg. stand.
   
   2. through priv. law means
      -i.e civil liability
      3.by priv. parties
      
      4. FUNC. ex-post but may also hv det. effect

Question 16

Who can bring matters regarding regulatory standards to civil courts?

Answer 16

1. Individuals (individu. enforce.)
2. Groups(e.g:consum. org.) (coll. enforce.)

Question 17

Explain the strengths of Private Enforcement

Answer 17

1. Interper. justice (thru civ. liab) with pursuit of pub. goals
   2.Det. + compens.
   3.Out. persp. on integrity of pub. enf. authori
2. Financ. by priv parties (not finance. by tax.)

Question 18

Explain the weaknesses of Priv. Enforcement

Answer 18

1. Driv. by private interests for public justice
   -priv. parties may lack since. 2 sue
   -rat. apathy
   -free-riding. problems
2. Insufficeint Information gathering capacity. (can’t really force people to give info.)

Question 19

Where can private enforcement take place?

Answer 19

-before civil courts-judicial enforcement
-ADR (alt. disp. resolution) (Extrajudicial)

Question 20

Explain what hybrid eforcement is

Answer 20

-The involve. of reg. agencies (public)
-in the prov. of private. redress

Question 21

What are the ways that hybrid enforcement is implemented

Answer 21

-Complementarity model
-Integration model

Question 22

Explain what the complementarity model is

Answer 22

-Indirect facilitation of
-priv redress

Question 23

Explain which two ways the complementarity model can be imple.

Answer 23

-Threats of fines
-Bringing collective action

Question 24

Explain how the complimentarity model can address noncompliance?

Answer 24

-Deterrence
-pub. author.
- Interperson. justice:
-help drive civil cases/ compensation

Question 25

Explain what the integration model of hybrid enforcement is

Answer 25

-reg. agency directly demand. comp. for indiv. -compens. is part of adm. enforcement (no need go to court)

Question 26

Explain the ways in which the integration method is implemented

Answer 26

- JUST ASK FOR THE DAMN COMP

Question 27

Explain how the integrat. model can address noncompliance

Answer 27

-Deterrence -public authority -Interrpersonal justice -oblige to give comp. and give to individuals -Substitu. courts(no instit. sep.) -faster, more efficient

Question 28

TRUE or FALSE: in the complimentarity model the instu. sep. between agencies and civil courts along the lines of det. and comp. is abandoned

Answer 28

-FALSE: complim model cannot directly enforce compensation, so not comp "abandoned" -but can greatly pressure -NB: remember the above phrasing

Question 29

List the ideal types of publci enforcement t

Answer 29

-Penal -Conciliatory

Question 30

Explain what regulatory conversations are

Answer 30

- when regulatees talk to rep. of public regulation agenc.

Question 31

List the three occasions for reg. coversations

Answer 31

1.Guidance and waivers 2 app. of prim. leg. 2.Sup. Rule form. 4 particular firms 3. Monitor. and enforcem. -instr. on HOW to comply NB: double check on this

Question 32

Describe the characteristics of a penal style of enforcement

Answer 32

-Ref. (post) -Main task: det. what harm was -Accus. + adver. rel. with regu. entitees

Question 33

Describes the characteristics of a conciliatory style of enforcement

Answer 33

-Prospective--> not punish. right about -Main task: responding to a prob. + nego. future conf. stand. -barg. and coopertaton with regu. entity

Question 34

Explain what a prospective style of enforcement is

Answer 34

-Not punish right away -Identify problem and negotiate + convince 2 conform to standards in future

Question 35

List the factors which determine how penal and conciliatory enforcement is?

Answer 35

-Legal design -(the ext. 2 which regulat. has power) -Task environment -2 what extent are regulatees willing to comp. -severity of risks -Political env -leadership type: -react. v. proac.

Question 36

Explain what the enforcement pyramid is

Answer 36

-The pyrmid which shows the PROG. STEPS -to take if regulat. continues to not comp. -Concillitory--> penal (escalation)

Question 37

List the phases of the enforcement pyramid in chronological order

Answer 37

1. Persuas. 2.Warning letter 3.Civil penal. 4.Crim. Penalty 5. Licence suspen. 6. Licenc. revoca.

Question 38

Explain the concerns with the enforcement pyramid

Answer 38

-If you keep on escal. based on noncomp. might be disprop. 2 illegal act -Can elicit acts whic. are against consti. values -